Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698927072004.pdf (Micronesia, Federated States of)
TWELFTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA THIRD SPECIAL SESSION, 2002 C.B.

NO.

12-108 A BILL FOR AN ACT To enact a new title 37 of the Code of the Federated States of Micronesia to establish an Insurance Law for the Federated States of Micronesia, and for other purposes.

BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.
The Code of the Federated States of Micronesia, 2 as amended, is hereby further amended by enacting a new title 37 3 entitled "The Insurance Act of 2002".

4 Section 2.

The Code of the Federated States of Micronesia, 5 as amended, is hereby further amended by enacting a new section 6 101 of title 37 to read as follows: "Section 101.

Declaration of Policy - Public interest.


The business of insurance is one affected by the public interest, requiring that all persons be actuated in good faith, abstain from deception and practice honesty and equity in all insurance matters.

The duty of preserving the integrity of insurance rests with the insurer, its representatives and the insured."

Section 3.
Section 3.

The Code of the Federated States of Micronesia, 15 as amended, is hereby further amended by enacting a new section 16 102 of title 37 to read as follows: "Section 102.

Compliance required.

No person shall transact a business of insurance in the Federated States of Micronesia without complying with the applicable 17 18 19 CB12 C.B.

NO.

12-108 1 2 3 provisions of this act and the rules and regulations promulgated thereunder."

Section 4.
Section 4.

The Code of the Federated States of Micronesia, 4 as amended, is hereby further amended by enacting a new section 5 103 of title 37 to read as follows: "Section 103.

Definitions.
Definitions.

(1) 'Disability insurance', also referred to as accident and sickness insurance, is insurance against bodily injury, disablement, or death by accident, or accidental means, or the expense thereof; against disablement or expense resulting from sickness; and every insurance appertaining thereto.
(2) 'General casualty insurance' includes vehicle insurance as defined in section 4(10), disability insurance defined in section 4(1) and in addition is insurance: (a) against legal liability for the death, injury, or disability of any human being, or from damage to property; (b) of medical, hospital, surgical, and funeral benefits to persons injured, irrespective of legal liability of the insured, when issued with or supplemental to insurance against legal liability for the death, injury, or disability of human beings; (c) of the obligation accepted by, imposed upon, 2 of 27 C.B.
NO.
12-108 or assumed by employers under law for death, disablement, or injury to employees; (d) against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal or concealment, or from any attempt of any of the foregoing; also insurance against loss or damage to moneys, coins, bullion, securities, notes, drafts, acceptances, or any other valuable papers or documents, resulting from any cause, except while in the mail; (e) upon personal effects of individuals, by an all-risk type of policy commonly known as the personal property floater; (f) against loss or damage to glass and its appurtenances resulting from any cause; (g) against any liability and loss or damage to property resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery, or apparatus; (h) against loss of or damage to any property of the insured resulting from the ownership, maintenance, or use of elevators, except loss or damage by fire; (i) against loss or damage to any property caused by the breakage or leakage of sprinklers, water pipes, and containers, or by water entering through leaks or 3 of 27 C.B.
NO.
12-108 openings in buildings; (j) against loss or damage resulting from failure of debtors to pay their obligations to the insured (credit insurance); (k) against loss of or damage to any domesticated or wild animal resulting from any cause (livestock insurance); (l) against loss of or damage to any property of the insured resulting from collision of any other object with such property, but not including collision to or by vessels, craft, piers, or other instrumentalities of ocean or inland navigation (collision insurance); (m) against legal liability of the insured, and against loss, damage, or expense incident to a claim of such liability, and including any obligation of the insured to pay medical, hospital, surgical, and funeral benefits to injured persons, irrespective of legal liability of the insured, arising out of the death or injury of any person, or arising out of injury to the economic interest of any person as the result of negligence in rendering expert, fiduciary, or professional service (malpractice insurance); or (n) against any other kind of loss, damage, or liability properly the subject of insurance and not within any other class or classes of insurance as 4 of 27 C.B.
NO.

12-108 defined in this act, if such insurance is not contrary to law or public policy.

(3) 'Insurance' is a contract whereby one undertakes to indemnify another or pay a specified amount upon determinable contingencies.
The following contracts are not considered to be insurance for the purpose of this act: (a) a title insurance contract; (b) a bond with respect to which no premium is charged or paid; (c) a bond or contract or undertaking in the performance of which the surety has an interest other than that of surety; (d) a plan or agreement between an employer and any employee or his representative, individually or collectively, by the terms of which the employer or the parties to the plan or agreement agree to contribute to the cost of nonoccupational disability benefits, medical attention, treatment, or hospitalization for the employee or members of his family unless such plan is underwritten by an insurer as defined in this act; or (e) a prepaid legal service plan other than plans in which either the group offering the plan or the person administering the plan is otherwise subject to this act.
5 of 27 C.B.

NO.

12-108 (4) 'Life insurance' is insurance on human lives and insurance appertaining thereto or connected therewith.
For the purposes of this act the transacting of life insurance includes the granting of annuities and endowment benefits; additional benefits in event of death or dismemberment by accident or accidental means; additional benefits in event of total and permanent disability of the insured; and optional modes of settlement of proceeds.
(5) 'Marine and transportation insurance' is: (a) insurance against any and all kinds of loss of or damage to: (i) vessels, craft, aircraft, cars, automobiles, and vehicles of every kind, as well as all goods, freight, cargoes, merchandise, effects, disbursement, profits, money, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia, and all other kinds of property and interests therein, in respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation including war risks, or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed, or similarly prepared for shipment or while awaiting the 6 of 27 C.B.
NO.
12-108 same or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder's risks and all personal property floater risks; (ii) person or to property in connection with or appertaining to a marine, inland marine, transit, or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance, or use of the subject matter of such insurance (but not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance, or use of automobiles); (iii) precious stones, jewels, jewelry, gold, silver, and other precious metals, whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise; and (iv) bridges, tunnels, and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot, and civil commotion are the only hazards to be covered; piers, wharves, docks, and slips, excluding the risks of fire, tornado, sprinkler leakage, 7 of 27 C.B.
NO.

12-108 hail, explosion, earthquake, riot, and civil commotion; other aids to navigation and transportation, including dry-docks and marine railways, against all risks.
(b) marine protection and indemnity insurance, meaning insurance against, or against legal liability of the insured for, loss, damage, or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness, or death or for loss of or damage to the property of another person.
(6) 'Ocean marine insurance' means insurance: (a) upon vessels, crafts, hulls, and of interests therein, or with relation thereto; (b) of marine builders' risks, marine war risks, and contracts of marine protection and indemnity insurance; (c) of freights and disbursements pertaining to a subject of insurance coming within this definition; or (d) of personal property and interests therein, in course of movement into or out of this Nation or among the islands of this Nation, or in course of exportation from or importation into any country, or in course of transportation coastwise, including 8 of 27 C.B.
NO.

12-108 transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to, or in connection with, any risks or perils of navigation, transit, or transportation, and while being prepared for and while awaiting shipment, and during any delays, storage, transshipment, or reshipment incident thereto.
(7) 'Person' means any individual, company, insurer, association, organization, group, reciprocal or interinsurance exchanges, partnership, business, trust, or corporation.

(8) 'Property insurance' is insurance against loss of or damage to real or personal property of every kind and any interest therein, from any or all hazard or cause and against loss consequential upon such loss of or damage.
An inclusion within other defined classes of insurance of the right to insure against certain designated perils to real or personal property shall not be deemed a diminution of the definition of property insurance.

(9) 'Surety insurance' includes: (a) bail bond insurance, which is a guarantee that any person, in or in connection with any proceedings in any court, will: (i) attend in court when required or 9 of 27 C.B.

NO.
NO.

12-108 (ii) will obey the orders of judgment of the court, as a condition to the release of the person from confinement, and the execution of bail bonds for any such purpose.
The making of property or cash bail does not constitute the transacting of bail bond insurance; (b) insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust; (c) guaranteeing the performance of contracts and guaranteeing and executing bonds, undertakings, and contracts of suretyship; and (d) indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss resulting from any cause of bills of exchange, notes, bonds, securities, evidences of debts, deeds, mortgages, warehouse receipts, or other valuable papers, documents, money, precious metals, and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation navigation; also against loss or damage to such insured's premises, or to his furnishings, fixtures, equipment, safes, and vaults therein, caused by burglary, robbery, theft, vandalism, 10 of 27 C.B.
NO.

12-108 or malicious mischief, or any attempt thereat.
(10) 'Vehicle insurance' is insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, and against any loss, expense or liability for loss or damage to persons or property resulting from or incident to ownership, maintenance, or use of any such vehicle or aircraft or animal.
Insurance against accidental death or accidental injury to individuals including the named insured while in, entering, alighting from, adjusting, repairing, cranking, or caused by being struck by a vehicle, aircraft, or draft or riding animal, if such insurance is issued as part of insurance on the vehicle, aircraft, or draft or riding animal, shall be deemed to be vehicle insurance."

Section 5.
Section 5.

The Code of the Federated States of Micronesia, 18 as amended, is hereby further amended by enacting a new section 19 104 of title 37 to read as follows: "Section 104.

Insurance Commissioner.

(1) the Secretary of the Department of Resources and Development shall be the Commissioner of Insurance.

(2) the Commissioner of Insurance shall: (a) issue regulations implementing the provisions of this act, subject to the approval of the President of 11 of 27 C.B.

NO.
NO.

12-108 the Federated States of Micronesia; (b) conduct examination and hearings authorized by this act; and (c) report to the Congress of the Federated States of Micronesia and the President of the Federated States of Micronesia annually on each anniversary of the effective date of this act on the status of the insurance industry operating in the Federated States of Micronesia and on any actions taken pursuant to this act.
He may also include comments or proposed changes to the insurance act as he deems fit."

Section 6.

The Code of the Federated States of Micronesia, 13 as amended, is hereby further amended by enacting a new section 14 105 of title 37 to read as follows: "Section 105.

Commissioner may delegate.


Any power, duty or function vested in the Commissioner of Insurance by this act may be exercised, discharged, or performed by any employee of the Department of Resources and Development acting in the name and by the delegated authority of the Commissioner."

Section 7.

The Code of the Federated States of Micronesia, 22 as amended, is hereby further amended by enacting a new section 23 106 of title 37 to read as follows: 24 25 "Section 106.

Copies and certificates as evidence.


(1) Copies of records or documents in his office 12 of 27 C.B.

NO.

12-108 certified to by the Commissioner of Insurance shall be received as evidence in all courts in the same manner and to the same effect as if they were the originals.
(2) When required for evidence in court, the Commissioner of Insurance shall furnish his certificate as to the authority of an insurer or other licensee in the Federated States of Micronesia on any particular date, and the court shall receive the certificate in lieu of the Commissioner's testimony."

10 Section 8.
10 Section 8.

The Code of the Federated States of Micronesia, 11 as amended, is hereby further amended by enacting a new section 12 107 of title 37 to read as follows: "Section 107.

Examination of insurers.

(1) The Commissioner of Insurance may examine the affairs, transactions, accounts, records, documents, and assets of each authorized insurer as often as he deems prudent.

He shall so examine each domestic insurer at least once in every three years.
(2) The Commissioner of Insurance shall examine fully each insurer applying for authority to do business in the Federated States of Micronesia.

(3) In lieu of making his own examination, the Commissioner of Insurance may accept a full report of the last recent examination of a foreign or alien insurer certified to by the insurance supervisory 13 of 27 C.B.

NO.

12-108 1 2 3 official of the state, province, or country of domicile."

Section 9.
Section 9.

The Code of the Federated States of Micronesia, 4 as amended, is hereby further amended by enacting a new section 5 108 of title 37 to read as follows: "Section 108.

Examination of agents, managers, promoters.
For the purpose of ascertaining its condition, or compliance with this act, the Commissioner may, as often as he deems advisable, examine the insurance accounts, records, documents, and transactions of: (1) any insurance general agent, subagent, solicitor, or adjuster; or (2) any person engaged in or proposing to be engaged in or assisting in the promotion or formation of a domestic insurer, or a stock corporation to finance a domestic mutual insurer or the production of its business, or a corporation to be attorney-in-fact for a domestic reciprocal insurer."
Section 10.

The Code of the Federated States of Micronesia, 21 as amended, is hereby further amended by enacting a new section 22 109 of title 37 to read as follows: 23 24 25 "Section 109.

Access to records; corrections.

(1) Every person being examined, its officers, employees, and representatives shall produce and make 14 of 27 C.B.

NO.
NO.

12-108 freely accessible to the Commissioner of Insurance the accounts, records, documents, and files in his possession or control relating to the subject of the examination, and shall otherwise facilitate the examination.
(2) If the Commissioner of Insurance finds the accounts to be inadequate or improperly kept or posted, he may employ experts to rewrite, post, or balance them at the expense of the person being examined, if the person has failed to correct the accounting records after the Commissioner has given him written notice and a reasonable opportunity to do so."

Section 11.
Section 11.

The Code of the Federated States of Micronesia, 14 as amended, is hereby further amended by enacting a new section 15 110 of title 37 to read as follows: "Section 110.

Examination reports.

(1) The Commissioner of Insurance shall make a full written report of each examination made by him.
(2) The report shall be certified by the Commissioner or by his examiner in charge of the examination, and shall be filed in the Department of Resources and Development subject to subsection (3) of this section.

(3) The Commissioner shall furnish to the person examined a copy of the examination report within 90 days after the execution of the report by the examiner and 15 of 27 C.B.

NO.
NO.

12-108 not less than 20 days prior to the filing of the report for public inspection in the department.

If the person so requests in writing within the 20-day period, the Commissioner shall hold a hearing to consider objections of the person to the report as proposed, and shall not so file the report until after the hearing and until after any modifications in the report deemed necessary by the Commissioner have been made.
(4) The report, when filed for public inspection, shall be admissible in evidence in any action or proceeding brought by the Commissioner against the person examined, or its officers or agents; except, that the Commissioner or his examiners may at any time testify and offer other proper evidence as to information secured during the course of an examination, whether or not a written report of the examination has at that time been either made, served, or filed in the department."

Section 12.
Section 12.

The Code of the Federated States of Micronesia, 20 as amended, is hereby further amended by enacting a new section 21 111 of title 37 to read as follows: 22 23 24 25 "Section 111.

Reports withheld.

The Commissioner of Insurance may withhold from public inspection any examination or investigation report for so long as he deems prudent."

16 of 27 C.B.

NO.

12-108 1 Section 13.


The Code of the Federated States of Micronesia, 2 as amended, is hereby further amended by enacting a new section 3 112 of title 37 to read as follows: "Section 112.

Examination expense.

(1) Examinations of any insurer coming under this act made by the Commissioner of Insurance or his examiners and employees shall, including fees, mileage, and expense incurred as to witnesses, be at the expense of the insurer examined.
(2) The insurer examined and liable therefore shall pay to the Commissioner's examiners upon presentation of an itemized statement thereof, their actual travel expenses, their reasonable living expense allowance, and their per diem compensation at a reasonable rate approved by the Commissioner, incurred on account of the examination.

The Commissioner or his examiners shall not receive or accept any additional emolument on account of any examination."

Section 14.
Section 14.

The Code of the Federated States of Micronesia, 20 as amended, is hereby further amended by enacting a new section 21 113 of title 37 to read as follows: 22 23 24 25 "Section 113.

Hearings.

(1) The Commissioner of Insurance shall hold a hearing if required by this act.

He may hold other hearings as he deems necessary for such purposes as are within the 17 of 27 C.B.

NO.

12-108 scope of this act.
(2) The hearing shall be held at a place designated by the Commissioner and at his discretion, it may be open to the public.

(3) Application for a hearing made to the Commissioner pursuant to this act shall be in writing, shall specify in what respect the person so applying was aggrieved and the grounds to be relied upon as a basis for the relief to be demanded at the hearing.
The Commissioner shall hold the hearing applied for within thirty (30) days after his receipt of the application unless postponed by mutual consent."

Section 15.

The Code of the Federated States of Micronesia, 14 as amended, is hereby further amended by enacting a new section 15 114 of title 37 to read as follows: "Section 114.

Stay of action.
Stay of action.

(1) Such demand for a hearing received by the Commissioner of Insurance prior to the effective date of action taken or proposed to be taken by him shall stay the action pending the hearing, except as to action taken or proposed: (a) under an order on hearing; (b) under an order pursuant to an order on hearing; or (c) under an order to make good an impairment of 18 of 27 C.B.

NO.

12-108 the assets of an insurer.


(2) In any case where an automatic stay is not provided for, and if the Commissioner, after written request therefor, fails to grant a stay, the person aggrieved thereby may apply to the Trial for a stay of the Commissioner's action."

Section 16.

The Code of the Federated States of Micronesia, 8 as amended, is hereby further amended by enacting a new section 9 115 of title 37 to read as follows: "Section 115.
Procedure.

(1) The Commissioner of Insurance shall preside at the hearing which shall be held in the manner provided in title 17 of the Code of the Federated States of Micronesia.

(2) A copy of the record of the proceedings shall be furnished any person affected by the hearing or any other person upon written request and at the expense of such person.
(3) Upon good cause shown, the Commissioner may permit any person who has a valid interest in the proceeding to intervene, appear, and be heard at the hearing.

(4) Any person heard shall make full disclosure of facts pertinent to the subject of inquiry as requested by the Commissioner or by any person affected by the hearing."

19 of 27 C.B.

NO.

12-108 1 Section 17.


The Code of the Federated States of Micronesia, 2 as amended, is hereby further amended by enacting a new section 3 116 of title 37 to read as follows: "Section 116.

Witnesses subpoenaed.

(1) The Commissioner of Insurance, either on his own behalf or on behalf of any interested party, may take depositions, and subpoena witnesses or documentary evidence.
The Commissioner may administer oaths, and examine under oath any individual relative to the affairs of any person being examined, or relative to the subject of any hearing or investigation.

(2) The subpoena shall have the same force and effect and shall be served in the same manner as if issued from a court of record.

(3) Witness fees and mileage, if claimed, shall be allowed the same as for testimony in a court of record.
Witness fees, mileage, and the actual expense necessarily incurred in securing attendance of witnesses and their testimony shall be itemized, and shall be paid by the person as to whom the examination is being made, or by the person if other than the Commissioner, at whose request the hearing is held."

Section 18.

The Code of the Federated States of Micronesia, 24 as amended, is hereby further amended by enacting a new section 25 117 of title 37 to read as follows: 20 of 27 C.B.

NO.
NO.

12-108 "Section 117.

Contempt proceedings.

If any individual fails to obey the subpoena, or obeys the subpoena but refuses to testify when required concerning any matter under examination or investigation or the subject of the hearing, the Commissioner shall file his written report thereof and proof of service of his subpoena in the Supreme Court of the Federated States of Micronesia.
Thereupon the Court shall forthwith cause the individual to be brought before it to show cause why he should not be held in contempt, and if so held, may punish him as if the failure or refusal related to a subpoena from or testimony in that court."

Section 19.

The Code of the Federated States of Micronesia, 14 as amended, is hereby further amended by enacting a new section 15 118 of title 37 to read as follows: "Section 118.

Notice of hearing.
Notice of hearing.

(1) The Commissioner of Insurance shall, not less than ten (10) days in advance, give notice to each person to be affected by the hearing of the matters prescribed in section 109 of title 17 of the Code of the Federated States of Micronesia.

(2) If the persons to be given notice are not specified in the provision pursuant to which the hearing is held, the Commissioner shall give such notice to all persons directly affected by the hearing."

21 of 27 C.B.

NO.

12-108 1 Section 20.


The Code of the Federated States of Micronesia, 2 as amended, is hereby further amended by enacting a new section 3 119 of title 37 to read as follows: "Section 119.

Show cause notice.
Show cause notice.

If any person is entitled to a hearing by this act before any proposed action is taken, the notice of the proposed action may be in the form of a notice to show cause stating that the proposed action may be taken unless such person shows cause, at a hearing to be held as specified in the notice, why the proposed action should not be taken, and stating the basis of the proposed action."

Section 21.
Section 21.

The Code of the Federated States of Micronesia, 13 as amended, is hereby further amended by enacting a new section 14 120 of title 37 to read as follows: "Section 120.

Adjourned hearing.

The Commissioner of Insurance may adjourn any hearing from time to time and from place to place without other notice of the adjourned hearing than announcement thereof at the hearing."

Section 22.
Section 22.

The Code of the Federated States of Micronesia, 21 as amended, is hereby further amended by enacting a new section 22 121 of title 37 to read as follows: 23 24 25 "Section 121.

Nonattendance.

The validity of any hearing held in accordance with the notice thereof shall not be affected by failure of any person to attend or to 22 of 27 C.B.

NO.

12-108 1 2 remain in attendance."

Section 23.


The Code of the Federated States of Micronesia, 3 as amended, is hereby further amended by enacting a new section 4 122 of title 37 to read as follows: "Section 122.

Order on hearing.
Order on hearing.

(1) Within thirty (30) days after the termination of a hearing the Commissioner of Insurance shall make his order thereon and shall give a copy of the order to each person to whom notice of the hearing was given or required to be given.
(2) The order shall contain: (a) a concise statement of the action taken; (b) the effective date of the action; (c) a designation of the provisions of this act or regulation pursuant to which the action is taken; and (d) such other matters as may be required by title 17 of the Code of the Federated States of Micronesia.
(3) An order on hearing may confirm, modify, or nullify action taken under an existing order, or may constitute the taking of any new action coming within the scope of the notice of such hearing."

Section 24.

The Code of the Federated States of Micronesia, 24 as amended, is hereby further amended by enacting a new section 25 123 of title 37 to read as follows: 23 of 27 C.B.

NO.

12-108 "Section 123.

Appeal from Commissioner's order.


(1) Any person aggrieved on account of any official action or threatened action of the Commissioner of Insurance, or of the failure to act if such failure is deemed to constitute an act under this act, may demand a hearing thereon as provided in section 14 of this act.

Any person aggrieved by any order of the Commissioner, including any order refusing a hearing, may appeal to the Trial Division of the Supreme Court of the Federated States of Micronesia.
(2) The appeal must be taken within thirty (30) days after the order complained of was given by the Commissioner.

If not so taken, the right to appeal from or restrain action under the order shall conclusively be deemed to have been waived.
(3) For the purpose of this section, persons aggrieved shall include any person directly or indirectly injured or threatened with injury on account of any such order or action whether or not the person was a party to the proceedings, if any, out of which the order or action arises."

Section 25.

The Code of the Federated States of Micronesia, 23 as amended, is hereby further amended by enacting a new section 24 124 of title 37 to read as follows: 25 "Section 124.

Cost of record on appeal.


The cost of 24 of 27 C.B.

NO.

12-108 1 2 3 preparing the record on appeal may be included in costs allowed by the court."

Section 26.

The Code of the Federated States of Micronesia, 4 as amended, is hereby further amended by enacting a new section 5 125 of title 37 to read as follows: "Section 125.

Stay of action on appeal.


(1) The taking of an appeal shall not stay any action taken or proposed to be taken by the Commissioner of Insurance under the order appealed from unless a stay is granted by the Commissioner or the reviewing court.

(2) In granting a stay of action, the Commissioner or the court shall consider whether the stay would tend to injure the public interest, and may require of the person taking the appeal such security or other conditions as may be deemed proper.
(3) If the order appealed from is one suspending, revoking, or refusing to renew an agent's, broker's, solicitor's, or adjuster's license, the appellant by filing a bond with the clerk of the court, subject to approval of the court, in the sum of $1,000, conditioned to pay all costs that may be awarded against him, may, if filed prior to the effective date of the order, supersede the order appealed from until the final determination of the appeal."

Section 27.
Section 27.

The Code of the Federated States of Micronesia, 25 of 27 C.B.

NO.

12-108 1 as amended, is hereby further amended by enacting a new section 2 126 of title 37 to read as follows: "Section 126.

Hearing the appeal.

The court shall give precedence to and may summarily hear and determine the appeal.

The court shall hear the appeal upon the record in the manner provided in title 17 of the Code of the Federated States of Micronesia.

Costs shall be awarded as in civil cases."


Section 28.

The Code of the Federated States of Micronesia, 10 as amended, is hereby further amended by enacting a new section 11 127 of title 37 to read as follows: "Section 127.

Appeals to Appellate Division of the Supreme Court.
An appeal may be taken to the Appellate Division of the Supreme Court of the Federated States of Micronesia, as in civil actions, from judgments of the Trial Division made pursuant to any provision of this act.

The appeals shall be advance upon the trial calendar of the Supreme Court and be heard at the earliest convenient date."

Section 29.

This act shall become law upon approval by the 21 President of the Federated States of Micronesia or upon its 22 becoming law without such approval.
23 24 Date: 6/24/02_______ 25 Introduced by: /s/ Joseph J. Urusemal____ Joseph J. Urusemal (by request) 26 of 27 C.B.

NO.

12-108 27 of 27